ALICO, INC. — Call Transcript 2026

Good morning, welcome to Alico's second quarter 2026 earnings call. Currently, all participants are in a listen-only mode. As a reminder, today's call is being recorded. I would now like to turn the call over to your host, John Mills, Managing Partner at ICR. Please go ahead, sir. Good morning, everyone, and thank you for joining us for Alico's second-quarter 2026 conference call. On the call today are John Kiernan, President and Chief Executive Officer, and Brad Heine, Chief Financial Officer. By now, everyone should have access to the second-quarter 2026 earnings release, which went out yesterday at approximately 4:15 P.M. Eastern Time. If you've not had a chance to view the release, it's available on the investor relations portion of the company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well. Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in these statements. Important factors that could cause or contribute to such differences include risks detailed in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and any amendments thereto filed with the SEC and those mentioned in the earnings release. The company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by law. During this call, the company may also discuss non-GAAP financial measures, including EBITDA, adjusted EBITDA, and net debt. For more details on these measures, please refer to the company's press release issued yesterday. With that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan. Thank you, John, and good morning, good afternoon, and good evening to everyone here on the call. Our second quarter results demonstrate continued execution of our strategy and our commitment to delivering on our near-term and long-term goals. With net income of $11.4 million, adjusted EBITDA of $16.9 million, and cash of $52.9 million at quarter end, we've extended our financial runway through fiscal 2028 while maintaining the flexibility to advance our development initiatives. Let me walk through the key accomplishments during and subsequent to the quarter. First, we closed at $26.9 million land sale in January. This transaction involved approximately 2,950 acres and generated a gain of approximately $19.8 million, bringing our year-to-date land sales to $34.6 million. The transaction reflects the strong demand for our Florida properties and validates our land monetization strategy. Our land portfolio continues to attract qualified buyers seeking prime agricultural and development-ready properties across Southwest Florida's growth corridors. With approximately 46,000 acres remaining in our Florida portfolio, we believe our diversified holdings provide continued opportunities for strategic land monetization that balances near-term cash generation with long-term development optionality. Second, we deployed $10 million through our 10b5-1 share repurchase program, acquiring 245,399 shares through April. This reflects our balanced approach to capital allocation and our confidence in the embedded value within our portfolio. We continue to assess optimal capital allocation decisions, including potential additional share repurchases, dividends, and strategic investments in our development pipeline as we execute our value creation strategy. Third, and most significantly, in late April, we received unanimous approval from the Collier County Board of County Commissioners for Corkscrew Grove East Village. This local entitlement represents a meaningful regulatory milestone for what we believe has the potential to be a significant development project for Southwest Florida. The approved East Village encompasses 1,446 acres and authorizes up to 4,502 dwelling units, including 362 affordable housing units for essential workers and approximately 238,000 sq ft of neighborhood-scaled retail and office space. The project aligns with Collier County's Rural Land Stewardship Area program and reflects our commitment to responsible development that balances growth with conservation. Corkscrew Grove East Village will enhance public infrastructure while permanently protecting thousands of acres of sensitive land and restoring wetlands and uplands to native habitat. As part of this plan, Alico will place nearly 5,000 acres into permanent conservation at no cost to taxpayers. The project reflects our emphasis on connected open space, preservation and restoration, and landscape-scale habitat connectivity. With local approvals now secured, we're focusing on working closely with the South Florida Water Management District, the U.S. Army Corps of Engineers, and the U.S. Fish and Wildlife Service to continue to show that this project is thoughtfully planned, environmentally responsible, and aligned with all requirements necessary to secure state and federal permits. We remain on our timeline of expected state approval by early 2027 and federal approval by the end of 2028. Keeping us on track for potential construction commencement in 2028 or 2029. Fourth, our diversified land utilization strategy continues to perform as intended. Approximately 97% of our farmable acres now generate revenue through agricultural partnerships with citrus growers, farmers, cattle ranchers, mining companies, sugarcane producers, and sod farming operations. These programs reduce operational complexity while maintaining agricultural use of our land. I'm also pleased to announce that Eric H. Speron joined our board of directors this quarter. Eric brings proven expertise in real estate and finance from his work at First Foundation and previously at J.P. Morgan. He currently serves on the board of Keweenaw Land Association, Limited and Tejon Ranch Company, and his experience will be valuable as we advance our development pipeline. Our development pipeline continues to advance with Corkscrew Grove Villages, Bonnet Lake, Saddlebag Grove, and Plant World, which total a total of 5,500 acres, maintain their estimated present value of between $335 million and $380 million, which we expect to realize within the next 5 years. This represents significant value creation potential from just 10% of our land holdings. Our balance sheet is strong. With $52.9 million in cash at quarter end and $92.5 million of available borrowing under our line of credit, we have the financial resources to execute our strategy. That cash position extends our runway through fiscal 2028, giving us the time and flexibility to advance our development projects on our timeline, not driven by liquidity constraints. In addition, because of our strategic decision to exit the citrus business, we have now dramatically improved our operating cash flow and essentially removed the current headwinds of fuel and fertilizer costs facing many industries today. Management's NPV analysis of our approximately 46,000 acres indicates asset value between $650 million and $750 million. With our current market capitalization and net debt of approximately $32.6 million at quarter end, we believe Alico represents value for investors seeking exposure to Florida's growth. What differentiates Alico is our combination of strategic land holdings across seven Florida counties, more than 125 years of local relationships and conservation credibility, a management team with expertise in both agriculture and real estate development, and a balanced portfolio approach with 75% of our land continuing in agricultural use. Our priorities for fiscal 2026 remain unchanged. Optimize agricultural operations by maximizing revenue from diversified leasing programs while maintaining cost controls. Advance our development projects through the entitlement process, with particular focus on securing remaining approvals for Corkscrew Grove Villages. Balance required entitle investments with shareholder returns while maintaining financial flexibility. To pursue operational excellence by leveraging our experienced team and local relationships to execute efficiently. The foundation is in place. The Collier County approval represents meaningful progress. We're positioned to advance through the remaining permitting processes. Our balance sheet and revenues from diversified agricultural operations provide the resources to execute our strategy. With that, I'll turn it over to Brad Heine, who will walk through our detailed financial results. Thank you, John, and good morning, everyone. I'll walk you through our second quarter fiscal 2026 financial results and provide additional details on our financial position. For the three months ended March 31st, 2026, we reported total revenue of $5.2 million compared to $18 million in the prior year period. For the six-month period ended March 31, 2026, we reported total revenue of $7.2 million compared to $34.9 million in the prior year period. Looking at our business segments, Alico Citrus results reflect the ongoing wind down of citrus operations that began in 2025. Revenue decreased significantly as expected, while cost of sales declined correspondingly. We completed our last significant citrus harvest in April 2025, and while we may see some residual activity during the wind down period, the reduced scale demonstrates our successful exit from capital-intensive citrus production. Land management and other operations revenue increased 113% in the quarter, driven by farm lease and sod revenue as we shift our focus to diversified land usage. For the 6 months ended March 31, 2026, revenues increased 97%, primarily from farm lease revenue, rock and sand royalties, and sod revenue. Our diversified programs now utilize approximately 97% of our roughly 32,500 farmable acres, representing approximately 89% of our total 46,000 agricultural acres. Our net income attributable to the Alico common stockholders for the 3 months ended March 31, 2026 was $11.4 million, or $1.49 per diluted share, compared to a net loss of $111.4 million or $14.58 per diluted share in the prior year period. The improvement was principally driven by the wind down of our citrus operations and the $26.9 million land sale we closed in January. We achieved positive EBITDA of $16.7 million for the three-month period ended March 31, 2026, compared to negative $14.7 million in the prior year period, a $31.4 million improvement. Our adjusted EBITDA was $16.9 million for the three-month period ended March 31, 2026, compared to $12.7 million last year. This positive EBITDA generation validates the cash generating capability of our transformed operating model. From a balance sheet perspective, we continue to demonstrate financial strength. Cash and cash equivalents at quarter end were $52.9 million, up from $38.1 million at fiscal year-end. This increase reflects the $26.9 million land sale in January, partially offset by $8.4 million in share repurchases during the quarter and operational uses of cash. Working capital was $52.2 million, with a current ratio of 9.63 to 1, while total debt was $85.5 million and net debt was $32.6 million at quarter end, compared to $85.5 million and $47.4 million respectively at fiscal year-end. Available borrowings on our credit facility were approximately $92.5 million, and our minimum liquidity requirement was $5.8 million, providing substantial financial flexibility. Through April 2026, we've repurchased 245,399 shares for $10 million through our share repurchase program, demonstrating our commitment to returning capital to shareholders when we see value. We are maintaining our 2026 guidance for adjusted EBITDA of approximately $14 million, and we are updating our year-end cash guidance to approximately $40 million and net debt guidance to approximately $45 million, reflecting the $10 million share repurchase program completed through April 2026. We expect to end the fiscal year with only the minimum required balance of $2.5 million on our revolving line of credit. The fundamentals are working as intended. We're generating cash flow from diversified land usage while maintaining optionality to pursue higher value development opportunities. The Collier County approval of Corkscrew Grove East Villages represents meaningful progress, and our balance sheet provides the resources to advance through the remaining permitting processes. Now I'd like to turn the call back to John for his closing remarks. Thank you, Brad. Before we open the call to questions from research analysts, I want to emphasize a few key points. First, Alico's delivering on what we committed to do. The land sales, the share repurchases, the entitlement approvals, the high land utilization rates we've achieved really demonstrate a consistent execution of our strategy. Second, our financial position provides the runway and flexibility to advance our development projects. The extension of our cash runway through fiscal 2028 gives us the time to maximize value from a regulatory process and development pipeline. Third, our business model is working. We've created multiple revenue streams through land leasing and management while advancing high-value development projects that we believe will generate substantial returns over the next 5 years. We're very pleased to have received unanimous approval from the Collier County Board of Commissioners for Corkscrew Grove East Village. We remain on our timeline of expecting state approval by the end of 2026 or 27, and federal approval by the end of 2028, keeping us on track for potential construction commencement in 2028 or 2029. Finally, we remain focused on responsible land stewardship and conservation. Wildlife underpass partnership with the Florida Department of Transportation and our commitment to preserving more than 6,000 acres of conservation areas for the entire Corkscrew Grove Villages project reflects our values and differentiate Alico in the development community. Katie will now open the call for questions. Thank you. If you would like to ask a question, please press star one on your telephone keypad. To leave the queue at any time, please press star two. Once again, that is star one to ask a question. We will pause for just a moment to allow everyone the chance to queue. Thank you. Our first question will come from Gerard Sweeney with ROTH Capital. Your line is open. Good morning, John and Brad. Thanks for taking my call. Hi. How are you doing, Gerard? Morning, Gerard. Doing well. Congrats on the Collier County approval, Corkscrew Grove. You also laid out the next sort of, I guess, hurdles for the state and federal approval. However, I wanted to discuss with you, and I understand that it could be early, if you have gone or reviewed how you'll develop Corkscrew Grove, whether or not you'll partner with somebody, do it yourself, et cetera. Again, I know it may be a little bit early for that question, but I figured I would ask it. No, it's a highly relevant question. We've been discussing it publicly over the last two years. Right now, our answer has not changed, but certainly the time horizon is starting to shrink a little bit. Alico still reserves the optionality to sell the land outright once it's entitled for entitled value to national or local home builders. We reserve the right to actually partner with these home builders at the same time, where we would get a little money up front and then share as the development progresses over time. Alico reserves the right to potentially bring in-house capabilities inside and basically develop this ourselves. Right now, we continue to have meetings in a number of those areas. Clearly in the next year or so, we will probably have to commit to one path or another. It really is gonna depend on a number of factors. That would be the timing of the approval process and the success that we have on staying on the 2027 and the 2028/2029 approvals, and also kind of what the market bears. You know, we have a very good team in-house, but we really are not construction experts. This is a prime location. It is a very well-thought-out plan. I think the approvals that we got at the local level reflect the fact that it's been very thoughtful and we think is highly marketable. At this point, we have nothing to announce on which path we're continuing to go down. Got it. That's helpful. Within a year, It's getting closer. I appreciate that. Yes. Separately, obviously nice land sale in January. By my math, a little over $9,100 per acre. I think you have about 46,000 acres left, you said. Some of that is Corkscrew Grove, some of it's Bonnet Lake, and some other maybe potentially developable land. How much, shall we say, maybe for lack of a better word, I know agricultural land or sand land is available for sale and, you know, that $9,000 per acre number is up considerably from five, six, seven years ago. You know, how much could you get for that remaining land? Understanding that maybe some of, you know, not all land was created equal and some have different value scenarios. Sure. We ask that you give us another week. We're gonna be seeing an investor conference next week, and we will give you a more detailed breakdown of kind of the buckets that we previously had discussed for what management believes is potentially their net present value. We just reiterated it. We think the entire portfolio, which is now 46,000 acres instead of the 50,000+ that we had two years ago, is still worth between $650 million and $750 million, and that is supported primarily by the large percentage of our acres that will be tied to agricultural for the long term, simply because the price point we had said previously was between $4,000 and $5,000 per acre. The trades that we've done over the last year and change have been, you know, in the $9,000 range. We can't say that the inventory portfolio is worth $9,000. We're not saying that at all. We're continuing to actually be conservative and we again beg your indulgence, but when we come out with our revised investment presentation next week, we should have a detailed slide that'll break that out in detail. Got it. In other words, that 650 to 750 was using $4,000 to $5,000 per acre. Some of the land, some, not all that land has probably increased, so, the average price may have increased, is what you're saying? Correct. That is correct. Got it. We think reason comps support that as an analysis. We don't think we're making that up. Got it. One last question. You know, obviously you have local approval, you have state approval, federal approval. You laid that out. You discussed that what development path you're gonna go down over the course of the next year. Any other major sort of steps, milestones that we should be aware of over the next 2 years, or do you think that's the majority of them? I mean, as far as Corkscrew Grove East Village is. You actually hit the third point, which is making a decision on how potentially we would monetize this on behalf of shareholders would be kind of the next big news item outside of the state approval and the federal approval for that. Got it. Okay. I appreciate it. I'll jump back in line. Thank you. Thank you, Jerry. Thank you. This concludes our Q&A session. I'll now turn the call back over to John Kiernan for any final or closing remarks. Thank you, Katie. To everyone, we really appreciate your continued interest in Alico. We look forward to updating you on our progress in the quarters ahead. We hope to talk to you again in August. Have a good day. Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Speaker 5: Good morning, welcome to Alico's second quarter 2026 earnings call. Currently, all participants are in a listen-only mode. As a reminder, today's call is being recorded. I would now like to turn the call over to your host, John Mills, Managing Partner at ICR. Please go ahead, sir. Good morning, welcome to Alico's second quarter 2026 earnings call. good morning welcome to alico's second quarter 2026 earnings call Currently, all participants are in a listen-only mode. currently all participants are in a listen-only mode As a reminder, today's call is being recorded. as a reminder today's call is being recorded I would now like to turn the call over to your host, John Mills, Managing Partner at ICR. i would now like to turn the call over to your host john mills managing partner at icr Please go ahead, sir. please go ahead sir

Speaker 4: Good morning, everyone, and thank you for joining us for Alico's second-quarter 2026 conference call. On the call today are John Kiernan, President and Chief Executive Officer, and Brad Heine, Chief Financial Officer. By now, everyone should have access to the second-quarter 2026 earnings release, which went out yesterday at approximately 4:15 P.M. Eastern Time. If you've not had a chance to view the release, it's available on the investor relations portion of the company's website at alicoinc.com. This call is being webcast, and a replay will be available on Alico's website as well. Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. Such statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in these statements. Good morning, everyone, and thank you for joining us for Alico's second-quarter 2026 conference call. good morning everyone and thank you for joining us for alico's second-quarter 2026 conference call On the call today are John Kiernan, President and Chief Executive Officer, and Brad Heine, Chief Financial Officer. on the call today are john kiernan president and chief executive officer and brad heine chief financial officer By now, everyone should have access to the second-quarter 2026 earnings release, which went out yesterday at approximately 4:15 P.M. by now everyone should have access to the second-quarter 2026 earnings release which went out yesterday at approximately 4:15 p.m Eastern Time. eastern time If you've not had a chance to view the release, it's available on the investor relations portion of the company's website at alicoinc.com. if you've not had a chance to view the release it's available on the investor relations portion of the company's website at alicoinc.com This call is being webcast, and a replay will be available on Alico's website as well. this call is being webcast and a replay will be available on alico's website as well Before we begin, we'd like to remind everyone that the prepared remarks contain forward-looking statements. before we begin we'd like to remind everyone that the prepared remarks contain forward-looking statements Such statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in these statements. such statements are subject to risks uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in these statements Important factors that could cause or contribute to such differences include risks detailed in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and any amendments thereto filed with the SEC and those mentioned in the earnings release. The company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by law. During this call, the company may also discuss non-GAAP financial measures, including EBITDA, adjusted EBITDA, and net debt. For more details on these measures, please refer to the company's press release issued yesterday. With that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan. Important factors that could cause or contribute to such differences include risks detailed in the company's quarterly reports on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and any amendments thereto filed with the SEC and those mentioned in the earnings release. important factors that could cause or contribute to such differences include risks detailed in the company's quarterly reports on form 10-q annual reports on form 10-k current reports on form 8-k and any amendments thereto filed with the sec and those mentioned in the earnings release The company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call, except as required by law. the company undertakes no obligation to subsequently update or revise the forward-looking statements made on today's call except as required by law During this call, the company may also discuss non-GAAP financial measures, including EBITDA, adjusted EBITDA, and net debt. during this call the company may also discuss non-gaap financial measures including ebitda adjusted ebitda and net debt For more details on these measures, please refer to the company's press release issued yesterday. for more details on these measures please refer to the company's press release issued yesterday With that, it is my pleasure to turn the call over to the company's President and CEO, Mr. John Kiernan. with that it is my pleasure to turn the call over to the company's president and ceo mr john kiernan

Speaker 3: Thank you, John, and good morning, good afternoon, and good evening to everyone here on the call. Our second quarter results demonstrate continued execution of our strategy and our commitment to delivering on our near-term and long-term goals. With net income of $11.4 million, adjusted EBITDA of $16.9 million, and cash of $52.9 million at quarter end, we've extended our financial runway through fiscal 2028 while maintaining the flexibility to advance our development initiatives. Let me walk through the key accomplishments during and subsequent to the quarter. First, we closed at $26.9 million land sale in January. This transaction involved approximately 2,950 acres and generated a gain of approximately $19.8 million, bringing our year-to-date land sales to $34.6 million. Thank you, John, and good morning, good afternoon, and good evening to everyone here on the call. thank you john and good morning good afternoon and good evening to everyone here on the call Our second quarter results demonstrate continued execution of our strategy and our commitment to delivering on our near-term and long-term goals. our second quarter results demonstrate continued execution of our strategy and our commitment to delivering on our near-term and long-term goals With net income of $11.4 million, adjusted EBITDA of $16.9 million, and cash of $52.9 million at quarter end, we've extended our financial runway through fiscal 2028 while maintaining the flexibility to advance our development initiatives. with net income of $11.4 million adjusted ebitda of $16.9 million and cash of $52.9 million at quarter end we've extended our financial runway through fiscal 2028 while maintaining the flexibility to advance our development initiatives Let me walk through the key accomplishments during and subsequent to the quarter. let me walk through the key accomplishments during and subsequent to the quarter First, we closed at $26.9 million land sale in January. first we closed at $26.9 million land sale in january This transaction involved approximately 2,950 acres and generated a gain of approximately $19.8 million, bringing our year-to-date land sales to $34.6 million. this transaction involved approximately 2,950 acres and generated a gain of approximately $19.8 million bringing our year-to-date land sales to $34.6 million The transaction reflects the strong demand for our Florida properties and validates our land monetization strategy. Our land portfolio continues to attract qualified buyers seeking prime agricultural and development-ready properties across Southwest Florida's growth corridors. With approximately 46,000 acres remaining in our Florida portfolio, we believe our diversified holdings provide continued opportunities for strategic land monetization that balances near-term cash generation with long-term development optionality. Second, we deployed $10 million through our 10b5-1 share repurchase program, acquiring 245,399 shares through April. This reflects our balanced approach to capital allocation and our confidence in the embedded value within our portfolio. We continue to assess optimal capital allocation decisions, including potential additional share repurchases, dividends, and strategic investments in our development pipeline as we execute our value creation strategy. The transaction reflects the strong demand for our Florida properties and validates our land monetization strategy. the transaction reflects the strong demand for our florida properties and validates our land monetization strategy Our land portfolio continues to attract qualified buyers seeking prime agricultural and development-ready properties across Southwest Florida's growth corridors. our land portfolio continues to attract qualified buyers seeking prime agricultural and development-ready properties across southwest florida's growth corridors With approximately 46,000 acres remaining in our Florida portfolio, we believe our diversified holdings provide continued opportunities for strategic land monetization that balances near-term cash generation with long-term development optionality. with approximately 46,000 acres remaining in our florida portfolio we believe our diversified holdings provide continued opportunities for strategic land monetization that balances near-term cash generation with long-term development optionality Second, we deployed $10 million through our 10b5-1 share repurchase program, acquiring 245,399 shares through April. second we deployed $10 million through our 10b5-1 share repurchase program acquiring 245,399 shares through april This reflects our balanced approach to capital allocation and our confidence in the embedded value within our portfolio. this reflects our balanced approach to capital allocation and our confidence in the embedded value within our portfolio We continue to assess optimal capital allocation decisions, including potential additional share repurchases, dividends, and strategic investments in our development pipeline as we execute our value creation strategy. we continue to assess optimal capital allocation decisions including potential additional share repurchases dividends and strategic investments in our development pipeline as we execute our value creation strategy Third, and most significantly, in late April, we received unanimous approval from the Collier County Board of County Commissioners for Corkscrew Grove East Village. This local entitlement represents a meaningful regulatory milestone for what we believe has the potential to be a significant development project for Southwest Florida. The approved East Village encompasses 1,446 acres and authorizes up to 4,502 dwelling units, including 362 affordable housing units for essential workers and approximately 238,000 sq ft of neighborhood-scaled retail and office space. The project aligns with Collier County's Rural Land Stewardship Area program and reflects our commitment to responsible development that balances growth with conservation. Corkscrew Grove East Village will enhance public infrastructure while permanently protecting thousands of acres of sensitive land and restoring wetlands and uplands to native habitat. Third, and most significantly, in late April, we received unanimous approval from the Collier County Board of County Commissioners for Corkscrew Grove East Village. third and most significantly in late april we received unanimous approval from the collier county board of county commissioners for corkscrew grove east village This local entitlement represents a meaningful regulatory milestone for what we believe has the potential to be a significant development project for Southwest Florida. this local entitlement represents a meaningful regulatory milestone for what we believe has the potential to be a significant development project for southwest florida The approved East Village encompasses 1,446 acres and authorizes up to 4,502 dwelling units, including 362 affordable housing units for essential workers and approximately 238,000 sq ft of neighborhood-scaled retail and office space. the approved east village encompasses 1,446 acres and authorizes up to 4,502 dwelling units including 362 affordable housing units for essential workers and approximately 238,000 sq ft of neighborhood-scaled retail and office space The project aligns with Collier County's Rural Land Stewardship Area program and reflects our commitment to responsible development that balances growth with conservation. the project aligns with collier county's rural land stewardship area program and reflects our commitment to responsible development that balances growth with conservation Corkscrew Grove East Village will enhance public infrastructure while permanently protecting thousands of acres of sensitive land and restoring wetlands and uplands to native habitat. corkscrew grove east village will enhance public infrastructure while permanently protecting thousands of acres of sensitive land and restoring wetlands and uplands to native habitat As part of this plan, Alico will place nearly 5,000 acres into permanent conservation at no cost to taxpayers. The project reflects our emphasis on connected open space, preservation and restoration, and landscape-scale habitat connectivity. With local approvals now secured, we're focusing on working closely with the South Florida Water Management District, the U.S. Army Corps of Engineers, and the U.S. Fish and Wildlife Service to continue to show that this project is thoughtfully planned, environmentally responsible, and aligned with all requirements necessary to secure state and federal permits. We remain on our timeline of expected state approval by early 2027 and federal approval by the end of 2028. Keeping us on track for potential construction commencement in 2028 or 2029. Fourth, our diversified land utilization strategy continues to perform as intended. As part of this plan, Alico will place nearly 5,000 acres into permanent conservation at no cost to taxpayers. as part of this plan alico will place nearly 5,000 acres into permanent conservation at no cost to taxpayers The project reflects our emphasis on connected open space, preservation and restoration, and landscape-scale habitat connectivity. the project reflects our emphasis on connected open space preservation and restoration and landscape-scale habitat connectivity With local approvals now secured, we're focusing on working closely with the South Florida Water Management District, the U.S. with local approvals now secured we're focusing on working closely with the south florida water management district the u.s Army Corps of Engineers, and the U.S. army corps of engineers and the u.s Fish and Wildlife Service to continue to show that this project is thoughtfully planned, environmentally responsible, and aligned with all requirements necessary to secure state and federal permits. We remain on our timeline of expected state approval by early 2027 and federal approval by the end of 2028. fish and wildlife service to continue to show that this project is thoughtfully planned environmentally responsible and aligned with all requirements necessary to secure state and federal permits. we remain on our timeline of expected state approval by early 2027 and federal approval by the end of 2028 Keeping us on track for potential construction commencement in 2028 or 2029. keeping us on track for potential construction commencement in 2028 or 2029 Fourth, our diversified land utilization strategy continues to perform as intended. fourth our diversified land utilization strategy continues to perform as intended Approximately 97% of our farmable acres now generate revenue through agricultural partnerships with citrus growers, farmers, cattle ranchers, mining companies, sugarcane producers, and sod farming operations. These programs reduce operational complexity while maintaining agricultural use of our land. I'm also pleased to announce that Eric H. Speron joined our board of directors this quarter. Eric brings proven expertise in real estate and finance from his work at First Foundation and previously at J.P. Morgan. He currently serves on the board of Keweenaw Land Association, Limited and Tejon Ranch Company, and his experience will be valuable as we advance our development pipeline. Approximately 97% of our farmable acres now generate revenue through agricultural partnerships with citrus growers, farmers, cattle ranchers, mining companies, sugarcane producers, and sod farming operations. approximately 97% of our farmable acres now generate revenue through agricultural partnerships with citrus growers farmers cattle ranchers mining companies sugarcane producers and sod farming operations These programs reduce operational complexity while maintaining agricultural use of our land. these programs reduce operational complexity while maintaining agricultural use of our land I'm also pleased to announce that Eric H. Speron joined our board of directors this quarter. i'm also pleased to announce that eric h. speron joined our board of directors this quarter Eric brings proven expertise in real estate and finance from his work at First Foundation and previously at J.P. eric brings proven expertise in real estate and finance from his work at first foundation and previously at j.p Morgan. morgan He currently serves on the board of Keweenaw Land Association, Limited and Tejon Ranch Company, and his experience will be valuable as we advance our development pipeline. he currently serves on the board of keweenaw land association, limited and tejon ranch company and his experience will be valuable as we advance our development pipeline Our development pipeline continues to advance with Corkscrew Grove Villages, Bonnet Lake, Saddlebag Grove, and Plant World, which total a total of 5,500 acres, maintain their estimated present value of between $335 million and $380 million, which we expect to realize within the next 5 years. This represents significant value creation potential from just 10% of our land holdings. Our balance sheet is strong. With $52.9 million in cash at quarter end and $92.5 million of available borrowing under our line of credit, we have the financial resources to execute our strategy. That cash position extends our runway through fiscal 2028, giving us the time and flexibility to advance our development projects on our timeline, not driven by liquidity constraints. Our development pipeline continues to advance with Corkscrew Grove Villages, Bonnet Lake, Saddlebag Grove, and Plant World, which total a total of 5,500 acres, maintain their estimated present value of between $335 million and $380 million, which we expect to realize within the next 5 years. our development pipeline continues to advance with corkscrew grove villages bonnet lake saddlebag grove and plant world which total a total of 5,500 acres maintain their estimated present value of between $335 million and $380 million which we expect to realize within the next 5 years This represents significant value creation potential from just 10% of our land holdings. this represents significant value creation potential from just 10% of our land holdings Our balance sheet is strong. our balance sheet is strong With $52.9 million in cash at quarter end and $92.5 million of available borrowing under our line of credit, we have the financial resources to execute our strategy. with $52.9 million in cash at quarter end and $92.5 million of available borrowing under our line of credit we have the financial resources to execute our strategy That cash position extends our runway through fiscal 2028, giving us the time and flexibility to advance our development projects on our timeline, not driven by liquidity constraints. that cash position extends our runway through fiscal 2028 giving us the time and flexibility to advance our development projects on our timeline not driven by liquidity constraints In addition, because of our strategic decision to exit the citrus business, we have now dramatically improved our operating cash flow and essentially removed the current headwinds of fuel and fertilizer costs facing many industries today. Management's NPV analysis of our approximately 46,000 acres indicates asset value between $650 million and $750 million. With our current market capitalization and net debt of approximately $32.6 million at quarter end, we believe Alico represents value for investors seeking exposure to Florida's growth. What differentiates Alico is our combination of strategic land holdings across seven Florida counties, more than 125 years of local relationships and conservation credibility, a management team with expertise in both agriculture and real estate development, and a balanced portfolio approach with 75% of our land continuing in agricultural use. In addition, because of our strategic decision to exit the citrus business, we have now dramatically improved our operating cash flow and essentially removed the current headwinds of fuel and fertilizer costs facing many industries today. in addition because of our strategic decision to exit the citrus business we have now dramatically improved our operating cash flow and essentially removed the current headwinds of fuel and fertilizer costs facing many industries today Management's NPV analysis of our approximately 46,000 acres indicates asset value between $650 million and $750 million. management's npv analysis of our approximately 46,000 acres indicates asset value between $650 million and $750 million With our current market capitalization and net debt of approximately $32.6 million at quarter end, we believe Alico represents value for investors seeking exposure to Florida's growth. with our current market capitalization and net debt of approximately $32.6 million at quarter end we believe alico represents value for investors seeking exposure to florida's growth What differentiates Alico is our combination of strategic land holdings across seven Florida counties, more than 125 years of local relationships and conservation credibility, a management team with expertise in both agriculture and real estate development, and a balanced portfolio approach with 75% of our land continuing in agricultural use. what differentiates alico is our combination of strategic land holdings across seven florida counties more than 125 years of local relationships and conservation credibility a management team with expertise in both agriculture and real estate development and a balanced portfolio approach with 75% of our land continuing in agricultural use Our priorities for fiscal 2026 remain unchanged. Optimize agricultural operations by maximizing revenue from diversified leasing programs while maintaining cost controls. Advance our development projects through the entitlement process, with particular focus on securing remaining approvals for Corkscrew Grove Villages. Balance required entitle investments with shareholder returns while maintaining financial flexibility. To pursue operational excellence by leveraging our experienced team and local relationships to execute efficiently. The foundation is in place. The Collier County approval represents meaningful progress. We're positioned to advance through the remaining permitting processes. Our balance sheet and revenues from diversified agricultural operations provide the resources to execute our strategy. With that, I'll turn it over to Brad Heine, who will walk through our detailed financial results. Our priorities for fiscal 2026 remain unchanged. our priorities for fiscal 2026 remain unchanged Optimize agricultural operations by maximizing revenue from diversified leasing programs while maintaining cost controls. optimize agricultural operations by maximizing revenue from diversified leasing programs while maintaining cost controls Advance our development projects through the entitlement process, with particular focus on securing remaining approvals for Corkscrew Grove Villages. advance our development projects through the entitlement process with particular focus on securing remaining approvals for corkscrew grove villages Balance required entitle investments with shareholder returns while maintaining financial flexibility. balance required entitle investments with shareholder returns while maintaining financial flexibility To pursue operational excellence by leveraging our experienced team and local relationships to execute efficiently. to pursue operational excellence by leveraging our experienced team and local relationships to execute efficiently The foundation is in place. the foundation is in place The Collier County approval represents meaningful progress. the collier county approval represents meaningful progress We're positioned to advance through the remaining permitting processes. we're positioned to advance through the remaining permitting processes Our balance sheet and revenues from diversified agricultural operations provide the resources to execute our strategy. our balance sheet and revenues from diversified agricultural operations provide the resources to execute our strategy With that, I'll turn it over to Brad Heine, who will walk through our detailed financial results. with that i'll turn it over to brad heine who will walk through our detailed financial results

Speaker 1: Thank you, John, and good morning, everyone. I'll walk you through our second quarter fiscal 2026 financial results and provide additional details on our financial position. For the three months ended March 31st, 2026, we reported total revenue of $5.2 million compared to $18 million in the prior year period. For the six-month period ended March 31, 2026, we reported total revenue of $7.2 million compared to $34.9 million in the prior year period. Looking at our business segments, Alico Citrus results reflect the ongoing wind down of citrus operations that began in 2025. Revenue decreased significantly as expected, while cost of sales declined correspondingly. We completed our last significant citrus harvest in April 2025, and while we may see some residual activity during the wind down period, the reduced scale demonstrates our successful exit from capital-intensive citrus production. Thank you, John, and good morning, everyone. thank you john and good morning everyone I'll walk you through our second quarter fiscal 2026 financial results and provide additional details on our financial position. i'll walk you through our second quarter fiscal 2026 financial results and provide additional details on our financial position For the three months ended March 31st, 2026, we reported total revenue of $5.2 million compared to $18 million in the prior year period. for the three months ended march 31st 2026 we reported total revenue of $5.2 million compared to $18 million in the prior year period For the six-month period ended March 31, 2026, we reported total revenue of $7.2 million compared to $34.9 million in the prior year period. for the six-month period ended march 31 2026 we reported total revenue of $7.2 million compared to $34.9 million in the prior year period Looking at our business segments, Alico Citrus results reflect the ongoing wind down of citrus operations that began in 2025. looking at our business segments alico citrus results reflect the ongoing wind down of citrus operations that began in 2025 Revenue decreased significantly as expected, while cost of sales declined correspondingly. revenue decreased significantly as expected while cost of sales declined correspondingly We completed our last significant citrus harvest in April 2025, and while we may see some residual activity during the wind down period, the reduced scale demonstrates our successful exit from capital-intensive citrus production. we completed our last significant citrus harvest in april 2025 and while we may see some residual activity during the wind down period the reduced scale demonstrates our successful exit from capital-intensive citrus production Land management and other operations revenue increased 113% in the quarter, driven by farm lease and sod revenue as we shift our focus to diversified land usage. For the 6 months ended March 31, 2026, revenues increased 97%, primarily from farm lease revenue, rock and sand royalties, and sod revenue. Our diversified programs now utilize approximately 97% of our roughly 32,500 farmable acres, representing approximately 89% of our total 46,000 agricultural acres. Our net income attributable to the Alico common stockholders for the 3 months ended March 31, 2026 was $11.4 million, or $1.49 per diluted share, compared to a net loss of $111.4 million or $14.58 per diluted share in the prior year period. Land management and other operations revenue increased 113% in the quarter, driven by farm lease and sod revenue as we shift our focus to diversified land usage. land management and other operations revenue increased 113% in the quarter driven by farm lease and sod revenue as we shift our focus to diversified land usage For the 6 months ended March 31, 2026, revenues increased 97%, primarily from farm lease revenue, rock and sand royalties, and sod revenue. for the 6 months ended march 31 2026 revenues increased 97% primarily from farm lease revenue rock and sand royalties and sod revenue Our diversified programs now utilize approximately 97% of our roughly 32,500 farmable acres, representing approximately 89% of our total 46,000 agricultural acres. Our net income attributable to the Alico common stockholders for the 3 months ended March 31, 2026 was $11.4 million, or $1.49 per diluted share, compared to a net loss of $111.4 million or $14.58 per diluted share in the prior year period. our diversified programs now utilize approximately 97% of our roughly 32,500 farmable acres representing approximately 89% of our total 46,000 agricultural acres. our net income attributable to the alico common stockholders for the 3 months ended march 31 2026 was $11.4 million or $1.49 per diluted share compared to a net loss of $111.4 million or $14.58 per diluted share in the prior year period The improvement was principally driven by the wind down of our citrus operations and the $26.9 million land sale we closed in January. We achieved positive EBITDA of $16.7 million for the three-month period ended March 31, 2026, compared to negative $14.7 million in the prior year period, a $31.4 million improvement. Our adjusted EBITDA was $16.9 million for the three-month period ended March 31, 2026, compared to $12.7 million last year. This positive EBITDA generation validates the cash generating capability of our transformed operating model. From a balance sheet perspective, we continue to demonstrate financial strength. Cash and cash equivalents at quarter end were $52.9 million, up from $38.1 million at fiscal year-end. The improvement was principally driven by the wind down of our citrus operations and the $26.9 million land sale we closed in January. the improvement was principally driven by the wind down of our citrus operations and the $26.9 million land sale we closed in january We achieved positive EBITDA of $16.7 million for the three-month period ended March 31, 2026, compared to negative $14.7 million in the prior year period, a $31.4 million improvement. we achieved positive ebitda of $16.7 million for the three-month period ended march 31 2026 compared to negative $14.7 million in the prior year period a $31.4 million improvement Our adjusted EBITDA was $16.9 million for the three-month period ended March 31, 2026, compared to $12.7 million last year. our adjusted ebitda was $16.9 million for the three-month period ended march 31 2026 compared to $12.7 million last year This positive EBITDA generation validates the cash generating capability of our transformed operating model. this positive ebitda generation validates the cash generating capability of our transformed operating model From a balance sheet perspective, we continue to demonstrate financial strength. from a balance sheet perspective we continue to demonstrate financial strength Cash and cash equivalents at quarter end were $52.9 million, up from $38.1 million at fiscal year-end. cash and cash equivalents at quarter end were $52.9 million up from $38.1 million at fiscal year-end This increase reflects the $26.9 million land sale in January, partially offset by $8.4 million in share repurchases during the quarter and operational uses of cash. Working capital was $52.2 million, with a current ratio of 9.63 to 1, while total debt was $85.5 million and net debt was $32.6 million at quarter end, compared to $85.5 million and $47.4 million respectively at fiscal year-end. Available borrowings on our credit facility were approximately $92.5 million, and our minimum liquidity requirement was $5.8 million, providing substantial financial flexibility. Through April 2026, we've repurchased 245,399 shares for $10 million through our share repurchase program, demonstrating our commitment to returning capital to shareholders when we see value. This increase reflects the $26.9 million land sale in January, partially offset by $8.4 million in share repurchases during the quarter and operational uses of cash. this increase reflects the $26.9 million land sale in january partially offset by $8.4 million in share repurchases during the quarter and operational uses of cash Working capital was $52.2 million, with a current ratio of 9.63 to 1, while total debt was $85.5 million and net debt was $32.6 million at quarter end, compared to $85.5 million and $47.4 million respectively at fiscal year-end. working capital was $52.2 million with a current ratio of 9.63 to 1 while total debt was $85.5 million and net debt was $32.6 million at quarter end compared to $85.5 million and $47.4 million respectively at fiscal year-end Available borrowings on our credit facility were approximately $92.5 million, and our minimum liquidity requirement was $5.8 million, providing substantial financial flexibility. available borrowings on our credit facility were approximately $92.5 million and our minimum liquidity requirement was $5.8 million providing substantial financial flexibility Through April 2026, we've repurchased 245,399 shares for $10 million through our share repurchase program, demonstrating our commitment to returning capital to shareholders when we see value. through april 2026 we've repurchased 245,399 shares for $10 million through our share repurchase program demonstrating our commitment to returning capital to shareholders when we see value We are maintaining our 2026 guidance for adjusted EBITDA of approximately $14 million, and we are updating our year-end cash guidance to approximately $40 million and net debt guidance to approximately $45 million, reflecting the $10 million share repurchase program completed through April 2026. We expect to end the fiscal year with only the minimum required balance of $2.5 million on our revolving line of credit. The fundamentals are working as intended. We're generating cash flow from diversified land usage while maintaining optionality to pursue higher value development opportunities. The Collier County approval of Corkscrew Grove East Villages represents meaningful progress, and our balance sheet provides the resources to advance through the remaining permitting processes. Now I'd like to turn the call back to John for his closing remarks. We are maintaining our 2026 guidance for adjusted EBITDA of approximately $14 million, and we are updating our year-end cash guidance to approximately $40 million and net debt guidance to approximately $45 million, reflecting the $10 million share repurchase program completed through April 2026. we are maintaining our 2026 guidance for adjusted ebitda of approximately $14 million and we are updating our year-end cash guidance to approximately $40 million and net debt guidance to approximately $45 million reflecting the $10 million share repurchase program completed through april 2026 We expect to end the fiscal year with only the minimum required balance of $2.5 million on our revolving line of credit. we expect to end the fiscal year with only the minimum required balance of $2.5 million on our revolving line of credit The fundamentals are working as intended. the fundamentals are working as intended We're generating cash flow from diversified land usage while maintaining optionality to pursue higher value development opportunities. we're generating cash flow from diversified land usage while maintaining optionality to pursue higher value development opportunities The Collier County approval of Corkscrew Grove East Villages represents meaningful progress, and our balance sheet provides the resources to advance through the remaining permitting processes. the collier county approval of corkscrew grove east villages represents meaningful progress and our balance sheet provides the resources to advance through the remaining permitting processes Now I'd like to turn the call back to John for his closing remarks. now i'd like to turn the call back to john for his closing remarks

Speaker 3: Thank you, Brad. Before we open the call to questions from research analysts, I want to emphasize a few key points. First, Alico's delivering on what we committed to do. The land sales, the share repurchases, the entitlement approvals, the high land utilization rates we've achieved really demonstrate a consistent execution of our strategy. Second, our financial position provides the runway and flexibility to advance our development projects. The extension of our cash runway through fiscal 2028 gives us the time to maximize value from a regulatory process and development pipeline. Third, our business model is working. We've created multiple revenue streams through land leasing and management while advancing high-value development projects that we believe will generate substantial returns over the next 5 years. We're very pleased to have received unanimous approval from the Collier County Board of Commissioners for Corkscrew Grove East Village. Thank you, Brad. thank you brad Before we open the call to questions from research analysts, I want to emphasize a few key points. before we open the call to questions from research analysts i want to emphasize a few key points First, Alico's delivering on what we committed to do. first alico's delivering on what we committed to do The land sales, the share repurchases, the entitlement approvals, the high land utilization rates we've achieved really demonstrate a consistent execution of our strategy. the land sales the share repurchases the entitlement approvals the high land utilization rates we've achieved really demonstrate a consistent execution of our strategy Second, our financial position provides the runway and flexibility to advance our development projects. second our financial position provides the runway and flexibility to advance our development projects The extension of our cash runway through fiscal 2028 gives us the time to maximize value from a regulatory process and development pipeline. the extension of our cash runway through fiscal 2028 gives us the time to maximize value from a regulatory process and development pipeline Third, our business model is working. third our business model is working We've created multiple revenue streams through land leasing and management while advancing high-value development projects that we believe will generate substantial returns over the next 5 years. we've created multiple revenue streams through land leasing and management while advancing high-value development projects that we believe will generate substantial returns over the next 5 years We're very pleased to have received unanimous approval from the Collier County Board of Commissioners for Corkscrew Grove East Village. we're very pleased to have received unanimous approval from the collier county board of commissioners for corkscrew grove east village We remain on our timeline of expecting state approval by the end of 2026 or 27, and federal approval by the end of 2028, keeping us on track for potential construction commencement in 2028 or 2029. Finally, we remain focused on responsible land stewardship and conservation. Wildlife underpass partnership with the Florida Department of Transportation and our commitment to preserving more than 6,000 acres of conservation areas for the entire Corkscrew Grove Villages project reflects our values and differentiate Alico in the development community. Katie will now open the call for questions. We remain on our timeline of expecting state approval by the end of 2026 or 27, and federal approval by the end of 2028, keeping us on track for potential construction commencement in 2028 or 2029. we remain on our timeline of expecting state approval by the end of 2026 or 27 and federal approval by the end of 2028 keeping us on track for potential construction commencement in 2028 or 2029 Finally, we remain focused on responsible land stewardship and conservation. finally we remain focused on responsible land stewardship and conservation Wildlife underpass partnership with the Florida Department of Transportation and our commitment to preserving more than 6,000 acres of conservation areas for the entire Corkscrew Grove Villages project reflects our values and differentiate Alico in the development community. wildlife underpass partnership with the florida department of transportation and our commitment to preserving more than 6,000 acres of conservation areas for the entire corkscrew grove villages project reflects our values and differentiate alico in the development community Katie will now open the call for questions. katie will now open the call for questions

Speaker 5: Thank you. If you would like to ask a question, please press star one on your telephone keypad. To leave the queue at any time, please press star two. Once again, that is star one to ask a question. We will pause for just a moment to allow everyone the chance to queue. Thank you. Our first question will come from Gerard Sweeney with ROTH Capital. Your line is open. Thank you. thank you If you would like to ask a question, please press star one on your telephone keypad. if you would like to ask a question please press star one on your telephone keypad To leave the queue at any time, please press star two. to leave the queue at any time please press star two Once again, that is star one to ask a question. once again that is star one to ask a question We will pause for just a moment to allow everyone the chance to queue. we will pause for just a moment to allow everyone the chance to queue Thank you. thank you Our first question will come from Gerard Sweeney with ROTH Capital. our first question will come from gerard sweeney with roth capital Your line is open. your line is open

Speaker 2: Good morning, John and Brad. Thanks for taking my call. Good morning, John and Brad. good morning john and brad Thanks for taking my call. thanks for taking my call

Speaker 3: Hi. How are you doing, Gerard? Hi. hi How are you doing, Gerard? how are you doing gerard

Speaker 1: Morning, Gerard. Morning, Gerard. morning gerard

Speaker 2: Doing well. Congrats on the Collier County approval, Corkscrew Grove. You also laid out the next sort of, I guess, hurdles for the state and federal approval. However, I wanted to discuss with you, and I understand that it could be early, if you have gone or reviewed how you'll develop Corkscrew Grove, whether or not you'll partner with somebody, do it yourself, et cetera. Again, I know it may be a little bit early for that question, but I figured I would ask it. Doing well. doing well Congrats on the Collier County approval, Corkscrew Grove. congrats on the collier county approval corkscrew grove You also laid out the next sort of, I guess, hurdles for the state and federal approval. you also laid out the next sort of i guess hurdles for the state and federal approval However, I wanted to discuss with you, and I understand that it could be early, if you have gone or reviewed how you'll develop Corkscrew Grove, whether or not you'll partner with somebody, do it yourself, et cetera. however i wanted to discuss with you and i understand that it could be early if you have gone or reviewed how you'll develop corkscrew grove whether or not you'll partner with somebody do it yourself et cetera Again, I know it may be a little bit early for that question, but I figured I would ask it. again i know it may be a little bit early for that question but i figured i would ask it

Speaker 3: No, it's a highly relevant question. We've been discussing it publicly over the last two years. Right now, our answer has not changed, but certainly the time horizon is starting to shrink a little bit. Alico still reserves the optionality to sell the land outright once it's entitled for entitled value to national or local home builders. We reserve the right to actually partner with these home builders at the same time, where we would get a little money up front and then share as the development progresses over time. Alico reserves the right to potentially bring in-house capabilities inside and basically develop this ourselves. No, it's a highly relevant question. no it's a highly relevant question We've been discussing it publicly over the last two years. we've been discussing it publicly over the last two years Right now, our answer has not changed, but certainly the time horizon is starting to shrink a little bit. right now our answer has not changed but certainly the time horizon is starting to shrink a little bit Alico still reserves the optionality to sell the land outright once it's entitled for entitled value to national or local home builders. alico still reserves the optionality to sell the land outright once it's entitled for entitled value to national or local home builders We reserve the right to actually partner with these home builders at the same time, where we would get a little money up front and then share as the development progresses over time. we reserve the right to actually partner with these home builders at the same time where we would get a little money up front and then share as the development progresses over time Alico reserves the right to potentially bring in-house capabilities inside and basically develop this ourselves. alico reserves the right to potentially bring in-house capabilities inside and basically develop this ourselves Right now, we continue to have meetings in a number of those areas. Clearly in the next year or so, we will probably have to commit to one path or another. It really is gonna depend on a number of factors. That would be the timing of the approval process and the success that we have on staying on the 2027 and the 2028/2029 approvals, and also kind of what the market bears. You know, we have a very good team in-house, but we really are not construction experts. This is a prime location. It is a very well-thought-out plan. Right now, we continue to have meetings in a number of those areas. right now we continue to have meetings in a number of those areas Clearly in the next year or so, we will probably have to commit to one path or another. clearly in the next year or so we will probably have to commit to one path or another It really is gonna depend on a number of factors. it really is gonna depend on a number of factors That would be the timing of the approval process and the success that we have on staying on the 2027 and the 2028/2029 approvals, and also kind of what the market bears. that would be the timing of the approval process and the success that we have on staying on the 2027 and the 2028/2029 approvals and also kind of what the market bears You know, we have a very good team in-house, but we really are not construction experts. you know we have a very good team in-house but we really are not construction experts This is a prime location. this is a prime location It is a very well-thought-out plan. it is a very well-thought-out plan I think the approvals that we got at the local level reflect the fact that it's been very thoughtful and we think is highly marketable. At this point, we have nothing to announce on which path we're continuing to go down. I think the approvals that we got at the local level reflect the fact that it's been very thoughtful and we think is highly marketable. i think the approvals that we got at the local level reflect the fact that it's been very thoughtful and we think is highly marketable At this point, we have nothing to announce on which path we're continuing to go down. at this point we have nothing to announce on which path we're continuing to go down

Speaker 2: Got it. That's helpful. Within a year, It's getting closer. I appreciate that. Got it. got it That's helpful. that's helpful Within a year, It's getting closer. within a year it's getting closer I appreciate that. i appreciate that

Speaker 3: Yes. Yes. yes

Speaker 2: Separately, obviously nice land sale in January. By my math, a little over $9,100 per acre. I think you have about 46,000 acres left, you said. Some of that is Corkscrew Grove, some of it's Bonnet Lake, and some other maybe potentially developable land. How much, shall we say, maybe for lack of a better word, I know agricultural land or sand land is available for sale and, you know, that $9,000 per acre number is up considerably from five, six, seven years ago. You know, how much could you get for that remaining land? Understanding that maybe some of, you know, not all land was created equal and some have different value scenarios. Separately, obviously nice land sale in January. separately obviously nice land sale in january By my math, a little over $9,100 per acre. by my math a little over $9,100 per acre I think you have about 46,000 acres left, you said. i think you have about 46,000 acres left you said Some of that is Corkscrew Grove, some of it's Bonnet Lake, and some other maybe potentially developable land. some of that is corkscrew grove some of it's bonnet lake and some other maybe potentially developable land How much, shall we say, maybe for lack of a better word, I know agricultural land or sand land is available for sale and, you know, that $9,000 per acre number is up considerably from five, six, seven years ago. how much shall we say maybe for lack of a better word i know agricultural land or sand land is available for sale and you know that $9,000 per acre number is up considerably from five six seven years ago You know, how much could you get for that remaining land? you know how much could you get for that remaining land Understanding that maybe some of, you know, not all land was created equal and some have different value scenarios. understanding that maybe some of you know not all land was created equal and some have different value scenarios

Speaker 3: Sure. We ask that you give us another week. We're gonna be seeing an investor conference next week, and we will give you a more detailed breakdown of kind of the buckets that we previously had discussed for what management believes is potentially their net present value. We just reiterated it. We think the entire portfolio, which is now 46,000 acres instead of the 50,000+ that we had two years ago, is still worth between $650 million and $750 million, and that is supported primarily by the large percentage of our acres that will be tied to agricultural for the long term, simply because the price point we had said previously was between $4,000 and $5,000 per acre. Sure. sure We ask that you give us another week. we ask that you give us another week We're gonna be seeing an investor conference next week, and we will give you a more detailed breakdown of kind of the buckets that we previously had discussed for what management believes is potentially their net present value. we're gonna be seeing an investor conference next week and we will give you a more detailed breakdown of kind of the buckets that we previously had discussed for what management believes is potentially their net present value We just reiterated it. we just reiterated it We think the entire portfolio, which is now 46,000 acres instead of the 50,000+ that we had two years ago, is still worth between $650 million and $750 million, and that is supported primarily by the large percentage of our acres that will be tied to agricultural for the long term, simply because the price point we had said previously was between $4,000 and $5,000 per acre. we think the entire portfolio which is now 46,000 acres instead of the 50,000+ that we had two years ago is still worth between $650 million and $750 million and that is supported primarily by the large percentage of our acres that will be tied to agricultural for the long term simply because the price point we had said previously was between $4,000 and $5,000 per acre The trades that we've done over the last year and change have been, you know, in the $9,000 range. We can't say that the inventory portfolio is worth $9,000. We're not saying that at all. We're continuing to actually be conservative and we again beg your indulgence, but when we come out with our revised investment presentation next week, we should have a detailed slide that'll break that out in detail. The trades that we've done over the last year and change have been, you know, in the $9,000 range. the trades that we've done over the last year and change have been you know in the $9,000 range We can't say that the inventory portfolio is worth $9,000. we can't say that the inventory portfolio is worth $9,000 We're not saying that at all. we're not saying that at all We're continuing to actually be conservative and we again beg your indulgence, but when we come out with our revised investment presentation next week, we should have a detailed slide that'll break that out in detail. we're continuing to actually be conservative and we again beg your indulgence but when we come out with our revised investment presentation next week we should have a detailed slide that'll break that out in detail

Speaker 2: Got it. In other words, that 650 to 750 was using $4,000 to $5,000 per acre. Some of the land, some, not all that land has probably increased, so, the average price may have increased, is what you're saying? Got it. got it In other words, that 650 to 750 was using $4,000 to $5,000 per acre. in other words that 650 to 750 was using $4,000 to $5,000 per acre Some of the land, some, not all that land has probably increased, so, the average price may have increased, is what you're saying? some of the land some not all that land has probably increased so the average price may have increased is what you're saying

Speaker 3: Correct. That is correct. Correct. correct That is correct. that is correct

Speaker 2: Got it. Got it. got it

Speaker 3: We think reason comps support that as an analysis. We don't think we're making that up. We think reason comps support that as an analysis. we think reason comps support that as an analysis We don't think we're making that up. we don't think we're making that up

Speaker 2: Got it. One last question. You know, obviously you have local approval, you have state approval, federal approval. You laid that out. You discussed that what development path you're gonna go down over the course of the next year. Any other major sort of steps, milestones that we should be aware of over the next 2 years, or do you think that's the majority of them? Got it. got it One last question. one last question You know, obviously you have local approval, you have state approval, federal approval. you know obviously you have local approval you have state approval federal approval You laid that out. you laid that out You discussed that what development path you're gonna go down over the course of the next year. you discussed that what development path you're gonna go down over the course of the next year Any other major sort of steps, milestones that we should be aware of over the next 2 years, or do you think that's the majority of them? any other major sort of steps milestones that we should be aware of over the next 2 years or do you think that's the majority of them

Speaker 3: I mean, as far as Corkscrew Grove East Village is. You actually hit the third point, which is making a decision on how potentially we would monetize this on behalf of shareholders would be kind of the next big news item outside of the state approval and the federal approval for that. I mean, as far as Corkscrew Grove East Village is. i mean as far as corkscrew grove east village is You actually hit the third point, which is making a decision on how potentially we would monetize this on behalf of shareholders would be kind of the next big news item outside of the state approval and the federal approval for that. you actually hit the third point which is making a decision on how potentially we would monetize this on behalf of shareholders would be kind of the next big news item outside of the state approval and the federal approval for that

Speaker 2: Got it. Okay. I appreciate it. I'll jump back in line. Thank you. Got it. got it Okay. okay I appreciate it. i appreciate it I'll jump back in line. i'll jump back in line Thank you. thank you

Speaker 3: Thank you, Jerry. Thank you, Jerry. thank you jerry

Speaker 5: Thank you. This concludes our Q&A session. I'll now turn the call back over to John Kiernan for any final or closing remarks. Thank you. thank you This concludes our Q&A session. this concludes our q&a session I'll now turn the call back over to John Kiernan for any final or closing remarks. i'll now turn the call back over to john kiernan for any final or closing remarks

Speaker 3: Thank you, Katie. To everyone, we really appreciate your continued interest in Alico. We look forward to updating you on our progress in the quarters ahead. We hope to talk to you again in August. Have a good day. Thank you, Katie. thank you katie To everyone, we really appreciate your continued interest in Alico. to everyone we really appreciate your continued interest in alico We look forward to updating you on our progress in the quarters ahead. we look forward to updating you on our progress in the quarters ahead We hope to talk to you again in August. we hope to talk to you again in august Have a good day. have a good day

Speaker 5: Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Thank you. thank you That brings us to the end of today's meeting. that brings us to the end of today's meeting We appreciate your time and participation. we appreciate your time and participation You may now disconnect. you may now disconnect